NOTE 14. ADDITIONAL FINANCIAL INFORMATION

Receivables, net

Receivables are presented net of an allowance for returns and doubtful accounts, which is an estimate of amounts that may not be collectible. In determining the allowance for returns, management analyzes historical returns, current economic trends and changes in customer demand and acceptance of the Company’s products. Based on this information, management reserves a certain portion of revenues that provide the customer with the right of return. The allowance for doubtful accounts is estimated based on historical experience, receivable aging, current economic trends and specific identification of certain receivables that are at risk of not being collected.

Receivables, net consist of:


	As of				As of
	September 30, 2014				June 30, 2014
	(in millions)
Receivables		$	1,658			$	1,563
Allowances for returns and doubtful accounts			(247	)			(175	)

Receivables, net		$	1,411			$	1,388

The Company’s receivables did not contain significant concentrations of credit risk as of September 30, 2014 or June 30, 2014 due to the wide variety of customers, markets and geographic areas to which the Company’s products and services are sold.

Other Current Assets

The following table sets forth the components of Other current assets:


	As of			As of
	September 30, 2014			June 30, 2014
	(in millions)
Inventory^(a)		$	293		$	310
Assets held for sale			2			11
Deferred tax assets			77			76
Prepayments and other current assets			287			274

Total Other current assets		$	659		$	671

^(a)	Inventory at September 30, 2014 and June 30, 2014 was primarily comprised of books, newsprint, printing ink, plate material and programming rights.

Other Non-Current Assets

The following table sets forth the components of Other non-current assets:


	As of			As of
	September 30, 2014			June 30, 2014
	(in millions)
Royalty advances to authors		$	291		$	267
Notes receivable^(a)			78			83
Deferred tax assets			152			146
Other			175			186

Total Other non-current assets		$	696		$	682

^(a)	Notes receivable relates to the Company’s sale of its former U.K. newspaper division headquarters.

Other Current Liabilities

The following table sets forth the components of Other current liabilities:


	As of			As of
	September 30, 2014			June 30, 2014
	(in millions)
Current tax payable		$	40		$	25
Current deferred income tax			38			36
Royalties and commissions payable			211			168
Other			196			202

Total Other current liabilities		$	485		$	431

Other, net

The following table sets forth the components of Other, net:


	For the three months ended
	September 30,
	2014		2013
	(in millions)
Foreign tax refund payable to 21st Century Fox^(a)	$	—	$	(483	)
Gain on third party pension contribution^(b)		—		37
Gain on sale of marketable securities^(c)		29		—
Dividends received from cost method investments		17		—
Other, net		2		5

Total Other, net	$	48	$	(441	)

^(a)	See Note 12—Income Taxes

^(b)	See Note 11—Pension and Other Postretirement Benefits

^(c)	See Note 4—Investments